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2.05 MB
Extraction Summary
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Document Information
Type:
Financial report / marketing material (invesco global sovereign asset management study)
File Size:
2.05 MB
Summary
This document is page 01 (Introduction) of an Invesco report on sovereign asset management (likely the 2017 edition). It summarizes trends in sovereign wealth funds, including a shift to 'safe haven' markets, interest in real estate, and ESG strategies. The document bears a 'HOUSE_OVERSIGHT' Bates stamp, suggesting it was included in document productions related to investigations into financial institutions connected to Jeffrey Epstein, though Epstein is not mentioned on this specific page.
People (1)
| Name | Role | Context |
|---|---|---|
| Alexander Millar | Head of EMEA Sovereigns & Middle East and Africa Institutional Sales |
Author/Contact point for the report, pictured at bottom left.
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Organizations (2)
| Name | Type | Context |
|---|---|---|
| Invesco |
Implied by email domain (@invesco.com) and website (igsams.invesco.com).
|
|
| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT_026681', indicating this document was produced during a congressional inv...
|
Key Quotes (3)
"This year marks our fifth annual study with evidence-based findings based predominantly on face-to-face interviews with 97 leading sovereign wealth funds, state pension funds and central banks with assets in excess of US$12 trillion."Source
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Quote #1
"Geopolitical risks have led to an increased concentration on perceived 'safe haven' international markets such as the US, India and Germany"Source
HOUSE_OVERSIGHT_026681.jpg
Quote #2
"Sovereigns are increasing allocations to high-quality direct real estate given perceived return, matching and flexibility attributes."Source
HOUSE_OVERSIGHT_026681.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (3,827 characters)
Introduction
We published our first report on the sovereign asset management industry in 2013 following interviews with 43 sovereign investors. This year marks our fifth annual study with evidence-based findings based predominantly on face-to-face interviews with 97 leading sovereign wealth funds, state pension funds and central banks with assets in excess of US$12 trillion.
We published our first report on the sovereign asset management industry in 2013 following interviews with 43 sovereign investors. This year marks our fifth annual study with evidence-based findings based predominantly on face-to-face interviews with 97 leading sovereign wealth funds, state pension funds and central banks with assets in excess of US$12 trillion.
Over the past five years we've noted a number of factors influencing sovereigns such as low interest rates, the falling oil price and reduced funding. This year however we note geopolitical shocks in developed markets are shaping decision making. When coupled with uncertainty over the end of quantitative easing, the commencement of quantitative tightening and ongoing volatility in currencies and commodities it's clear sovereign investors are faced with a challenging macroeconomic and therefore investment environment.
The first theme in this year's report addresses the aforementioned factors and notes a continuing return gap between target and actual returns with asset deployment challenges limiting the ability for sovereigns to match strategic asset allocation targets. We note sovereigns are increasingly looking to evolve their business models through internalisation or investment partnerships to reduce management costs and improve placement efficiency.
Geopolitical risks have led to an increased concentration on perceived 'safe haven' international markets such as the US, India and Germany as well as an increasing focus on home market allocations in an effort to reduce foreign currency exposure.
We focus on real estate in our third theme, highlighting accelerated growth in the asset class. We examine the drivers for these allocations as well as setting out how and where assets are being deployed.
Despite sovereigns being well placed to implement Environmental, social and governance (ESG) strategies due to their size and long-term orientation, the uptake of ESG practices by sovereigns appears to have varying success. We highlight sovereigns' polarised perspectives on ESG investing across various regions.
We conclude with a theme focused on central banks. This year we have expanded and segmented our central bank sample to understand differences in strategy and pace of change with respect to investment tranches across developed and emerging markets.
We hope the unique, evidence-based findings in this year's report provide a valuable insight into a fascinating and important group of investors.
Key themes
Shift from investment strategy to business model
The gap between target and actual portfolio returns along with declines in investment commitments are reshaping sovereigns' strategic agendas.
The gap between target and actual portfolio returns along with declines in investment commitments are reshaping sovereigns' strategic agendas.
Increasing appeal of perceived 'safe haven' markets
Geopolitical uncertainty is leading to a focus on perceived 'safe haven' international markets and home markets.
Geopolitical uncertainty is leading to a focus on perceived 'safe haven' international markets and home markets.
Attraction to real estate for matching and flexible participation
Sovereigns are increasing allocations to high-quality direct real estate given perceived return, matching and flexibility attributes.
Sovereigns are increasing allocations to high-quality direct real estate given perceived return, matching and flexibility attributes.
Environmental, social and governance (ESG) growth dependent on performance data
Perspectives on ESG are polarised with supporters moving to further embed and integrate ESG in investment processes while non-supporters wait for evidence of investment implications.
Perspectives on ESG are polarised with supporters moving to further embed and integrate ESG in investment processes while non-supporters wait for evidence of investment implications.
Central bank risk appetite driven by financial market exposure
Central bank investment priorities and risk appetite vary according to the size of the country's reserves and to the level of exposure to financial market shocks.
Central bank investment priorities and risk appetite vary according to the size of the country's reserves and to the level of exposure to financial market shocks.
[Photo of Alexander Millar]
Alexander Millar
Head of EMEA Sovereigns & Middle East and Africa Institutional Sales
alexander.millar@invesco.com
+44 1491 416180
Head of EMEA Sovereigns & Middle East and Africa Institutional Sales
alexander.millar@invesco.com
+44 1491 416180
01
igsams.invesco.com
to view more content on this year's themes
to view more content on this year's themes
HOUSE_OVERSIGHT_026681
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